To anyone who was surprised when Apple dropped the price of its iPhone: You should've seen it coming.

That's how it is with new technology. Something cool comes out, and by the time you figure out how to work it, there's something cooler, faster, smaller or just plain better. And, it's usually cheaper.

“This is life in the technology lane,” Apple CEO Steve Jobs said in an open Web letter to early iPhone buyers. “There is always something better and less expensive on the horizon.”

Apple released its iPhone three months ago. Last month, Apple dropped the phone's price by $200, bringing the hip little device's cost to$399.

The company is offering a $100 credit to anyone who bought the iPhone before Aug. 22. But the credit can't be used for downloads from Apple's popular iTunes service. Anyone who bought an iPhone from Apple after Aug. 22 is eligible for the company's price protection program, which provides a refund or credit for the difference when prices drop within a few weeks of purchase.

Both are nice gestures, but the paperwork and deadlines involved make collecting a bit of a hassle.

I'm the kind of person who would rather just wait out a price drop before buying a hot new gadget. But every time I do get a new gadget, I can't help but wondering if I'm buying at the right time.

“If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product,” Jobs said in his letter.

He's right, but finding time between waiting long enough and not waiting too long is an art.

The ideal time to buy depends on the product, but a good rule of thumb is not to rush into technology you can't yet use.

Smart Money suggests waiting six months to buy the hot new cell phone, a year for the latest TV, a year for that cool new digital camera you're dreaming of and at least until the games you want are released for gaming systems
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Cell phones can drop from a few hundred bucks to free in a few months.

TVs often are designed for future technology. So while your new TV may be ready to show you something cool, your cable provider may not be.

Digital cameras seem just a small step removed from video cameras nowadays, and most have enough pixels to show you more than you probably want to remember. So rushing out to get an upgrade for another megapixel or two can wait.

Video game systems like the Nintendo Wii can be a blast but only if the games you want to play are already out.
 
Being the first one to get a cool new gadget might make you cool. But getting the cool new gadget for free is cooler.